The pub, which has a licence until 3am, is two blocks from The Tote, the subject of a fierce campaign to retain its live music. The council will seek an interim order for the pub to stop live music until it can get an acoustic expert to carry out tests and works at the Johnston Street hotel.

The Tote shut in 2010, citing the high costs associated with liquor licensing law changes but reopened that year with live music under different owners.

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Bendigo Hotel licensee Guy Palermo says the pub depends on live music to survive.Credit:Simon O'Dwyer

Bendigo Hotel publican and licensee Guy Palermo said without live music - the pub's only drawcard - an interim order would sound its death knell. ''I would have to close without live music - we don't sell food,'' Mr Palermo said.

''My investment for the last four years would be gone.''

He said he would not be able to keep the pub open until February when another VCAT hearing was scheduled.

Mr Palermo said only one resident had complained about the noise, although that was disputed by the council. He said he had offered to double glaze his windows to muffle the sound and had offered to take over the neighbour's lease. Mr Palermo said he had spent $15,000 on an acoustic engineer and other works to reduce the noise. He said the cost of the dispute would rise to $25,000 once the VCAT interim order case was heard on Tuesday.

Mr Palermo said the move would have ramifications for the international and Australian underground punk and metal artists who were booked to play at the venue. ''Music fans are in uproar,'' he said.

City of Yarra mayor Jackie Fristacky said there had been 14 noise complaints, coming from more than one person, in the past 12 months. Testing showed that, despite work, the venue breached EPA noise guidelines for Victoria, she said. ''Officers have been in regular contact with the hotel to achieve a solution but unfortunately one has not been reached.''